Reader’s Question:

One auto insurance company here in New York is charging me higher premiums for their insurance, citing my not-so-good credit history as reason for my not getting cheaper auto insurance. Do they really look into people’s credit history? What for?

Daisy

Albany, NY

Interesting question. Really interesting question. I asked around, too, and did some research on my own, you see. And here is what I got.

There are some auto insurance companies (I suppose that includes yours there in New York) that take into account one’s credit history. They feel that a good credit standing is a reflection of how good one’s behavior would be when the time comes that he or she would be making the claims on the auto insurance. They think that a good credit history can prevent unpleasant insurance losses. From my own point of view, I do not see where this line of reasoning is coming from.

Well, anyway, apart from your credit history, these auto insurance companies consider a few other things about you, and they are: your age, your driving record, the state you live in, your type of vehicle, and so on. These are the factors that the auto insurance company will consider when computing for your premium.

So, if you’re after cheaper auto insurance premiums, you should start working on cleaning up your credit record this year. By next year, you may ask certification from the Credit Bureau. That way, you may avail of auto insurance discounts that someone who does not have a good credit record normally would not enjoy.

Reader’s Question:

I have an unregistered car in community parking lot. Because of the insurance lapse in NY, my registration is suspended so I returned the car plates. But my community apartment parking management warned me of towing my car because it is not registered. Since I do not have a private home, where should I store my car? Is there a temporary parking registration? Where can I get this?

Mishi

Brooklyn, NY

As you are aware, registration and driver’s license will be suspended indefinitely if the car is without insurance and he owner fails to surrender the vehicle plates to the New York DMV.

On the otherhand, a lapse in your insurance coverage in New York State and failure to immediately surrender the vehicle plates will suspend the registration for the same number of days that the car is without an insurance but has held the vehicle plates. You should pay the termination fee of $25 when the suspension period ends to reinstate your driver’s license.

The site of New York State Department of Motor Vehicles provides a list of the civil penalties amounts for registration suspensions caused by insurance lapse. You can look for a private storage facility to solve you parking situation until you get your plates back and reinstate your registration since most of the pubic lot, like your apartment’s parking lot, will tow vehicles if the parking lot management finds out that the car is without a registration.

You can check with NYS DMV if there is any temporary parking registration or any other type of decal that you could place on your car while it is in current location so that the car will not be towed.

Reader’s Question:

I would like to know what is the minimum insurance that I should have for my car. Is it okay to get just the minimum or should I buy more insurance? This is Chris from Buffalo, New York.

Chris

Buffalo, NY

Hey Chris. If you want to drive legally in Buffalo, New York, you will need to have liability insurance with the following minimum amounts of coverage: $10000 for property damage, a minimum of $25000 and maximum of $50000 for injury and a minimum of $50000 for death with a maximum of $100000. Your coverage for liability has to remain in effect even if the vehicle is not used as long as the registration is valid. Now, as to your question on getting more coverage, this would be dependent upon several factors as well. First of all, you will have to decide up to how much can you pay for your insurance. Second, take into consideration your ability to pay out of your own pocket if ever something happens that is not covered by your insurance?

Next think about the value of your car both to your lifestyle and as an asset in your personal finance books. Now, decide whether it is more practical for you to pay a higher premium for more coverage, then get more insurance. Generally you would do this if your car is relatively new, or too costly to repair on your own. Otherwise, it may be better to just keep a little more in your bank account to tide you over if you do have to pay out of your own pocket should anything happen.

Reader’s Question:

I live in Queens, New York. What is the definition of “Property Damage” here in my state?

Karen

Queens, NY

According to the New York Insurance Law, Property damage Liability insurance is defined as insurance against legal liability of the insured, and against loss, damage or expense incident to a claim of such liability, arising out of the loss or destruction of, or damage to, the property of any other person, but not including any kind of insurance specified in paragraph thirteen, fifteen or twenty-eight of this subsection.

So if your vehicle is damaged in a car accident and it is the other drivers fault then, you may be able to place a car insurance claim against that other party’s car insurance policy for Property Damage Liability. According to the New York State Insurance Department you may also go to court against the other driver for property damage.

If you want to get more information on the specific definition of terms of a New York State Property Damage Liability coverages you may contact the New York State Insurance Department.

Reader’s Question:

I am planning to move to Manhattan, New York from CO and I am wondering if I also need to change my drivers license to NY and if its possible to keep my car insurance in CO.

Brad

Manhattan, NY

According to the New York State Department of Motor vehicle you must apply for a New York driver license not more than thirty days after you become a New York resident. You also have thirty days after you become a resident to register your car in the state of New York. When you apply for a NY title and registration you must have valid New York liability car insurance. According to the NYS DMV you cannot show proof of insurance from a different state under any circumstances.

Most insurance providers would not want to keep insuring you if you and your automobile are now garaged out of state. The garaging location of the automobile is essential to an insurance provider and once you move into a new state normally they will suggest you to obtain insurance now from that state in Manhattan, New York, especially since state financial responsibility or insurance laws vary from state to state.

Reader’s Question:

I have the minimum liability insurance in Albany, New York and yesterday my vehicle was stolen, can I get something from my car insurance carrier?

Tony

Albany, NY

It is unfortunate that your vehicle was stolen but the minimum liability coverage that you have will not cover your stolen vehicle in Albany, New York. You need the physical damage of comprehensive coverage on your car to be covered by your insurance provider.

If your vehicle is stolen comprehensive coverage will also provide a certain amount per day for transportation expenses such as rental car, public transportation, depending on the what the terms on your car insurance policy. In general, this car insurance coverage is provided until the time the insurance carrier makes an offer to settle your car insurance claim.

Since you did not have comprehensive coverage on your vehicle there is no coverage on your stolen car and so your insurance carrier will not compensate you or be required to assist you with the vehicle that was stolen in any way.